New loan advice could be putting UK homeowners with debt at risk of personal bankruptcy.
As interest rates have risen over the last 12 months, the number of fixed rate mortgages have increased. Despite this, many UK residents need to borrow more. Although the best option can be to extend a fixed rate mortgage, lenders are often reluctant to agree.
Lenders are increasingly advising people to turn to secured loans as the answer, as they have much lower repayments than unsecured debt, and applications are much more likely to be accepted despite existing debt. Borrowers with secured loans, however, must be fully aware that if repayments are not made, their homes may be at risk of repossession.